The directive sent by the finance ministry to all state-run banks is a reiteration of the guidelines issued earlier by the Reserve Bank of India

New Delhi: As the number of wilful defaulters in the country continue to rise, the Finance Ministry has asked all public sector banks or PSBs to "name and shame" them on their respective websites, reported news agency PTI. It directed PSBs to put up pictures of the wilful defaulters along with their names online. The directive sent by the finance ministry to all state-run banks is a reiteration of the guidelines issued earlier by the Reserve Bank of India, added the report.

“We are tightening the noose around wilful defaulters and with their pictures available online and on the bank’s website, it will be another attempt by the banks to name and shame them,” said a finance ministry official, who did not wish to be identified.

The directive asks banks to "follow" the RBI notification, which suggests banks to formulate a policy with the approval of their board directors to set criteria for publishing such photographs. “Banks are advised to place the matter before your board for appropriate action, in accordance with RBI directions on the matter,” it said.

The official said that all steps are in tandem with the government’s Enhanced Access and Service Excellence (EASE) programme to strengthen banks. “Banks are not only going to identify the wilful defaulters but also publish their names and photographs for complete transparency,” he said. The government has asked all state-run banks to examine non-performing loans of more than Rs 50 crore for any sign of fraud.

As per the latest data available, the number of wilful defaulters increased by a marginal 1.66 per cent to 9,063 in April-December 2017. The amount involved for PSBs is reported to be Rs 1.10 lakh crore.

PSBs had till December registered 2,108 first information reports or FIRs against wilful defaulters, filed 8,462 suits for recovery from wilful defaulters and initiated action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 in respect of 6,962 cases of wilful defaulters.

Finance Ministry asks PSBs to 'name and shame' wilful defaultersDescription:The directive sent by the finance ministry to all state-run banks is a reiteration of the guidelines issued earlier by the Reserve Bank of IndiaTimes Now